LUV vs. VOO

Last updated Jun 24, 2026

LUV (Southwest Airlines Co.) is a stock, while VOO (Vanguard S&P 500 ETF) is S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, LUV returned 3.84%/yr vs 15.61%/yr for VOO. At a 0.49 correlation, their price movements are largely independent.

Performance

LUV vs. VOO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Southwest Airlines Co. (LUV) and Vanguard S&P 500 ETF (VOO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LUV achieves a 20.59% return, which is significantly higher than VOO's 8.19% return. Over the past 10 years, LUV has underperformed VOO with an annualized return of 3.84%, while VOO has yielded a comparatively higher 15.61% annualized return.

LUV

• 1D: 1.73%
• 1M: 21.45%
• YTD: 20.59%
• 6M: 20.45%
• 1Y: 57.90%
• 3Y*: 15.83%
• 5Y*: -0.40%
• 10Y*: 3.84%

VOO

• 1D: -1.42%
• 1M: -1.34%
• YTD: 8.19%
• 6M: 7.24%
• 1Y: 23.69%
• 3Y*: 20.78%
• 5Y*: 13.13%
• 10Y*: 15.61%

*Multi-year figures are annualized to reflect compound growth (CAGR)

LUV vs. VOO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
LUV Southwest Airlines Co.	20.59%	25.62%	19.11%	-11.82%	-21.41%	-8.09%	-13.32%	17.72%	-28.21%	32.40%
VOO Vanguard S&P 500 ETF	8.19%	17.82%	24.98%	26.32%	-18.17%	28.79%	18.32%	31.37%	-4.50%	21.77%

Correlation

The correlation between LUV and VOO is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (3Y) Calculated over the trailing 3-year period	0.40
Correlation (5Y) Calculated over the trailing 5-year period	0.47
Correlation (10Y) Calculated over the trailing 10-year period	0.47
Correlation (All Time) Calculated using the full available price history since Sep 9, 2010	0.49

Return for Risk

LUV vs. VOO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

LUV

LUV Risk / Return Rank: 75
LUV Sharpe Ratio Rank: 79
LUV Sortino Ratio Rank: 77
LUV Omega Ratio Rank: 75
LUV Calmar Ratio Rank: 72
LUV Martin Ratio Rank: 69

VOO

VOO Risk / Return Rank: 59
VOO Sharpe Ratio Rank: 59
VOO Sortino Ratio Rank: 56
VOO Omega Ratio Rank: 58
VOO Calmar Ratio Rank: 56
VOO Martin Ratio Rank: 67

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

LUV vs. VOO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Southwest Airlines Co. (LUV) and Vanguard S&P 500 ETF (VOO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	LUV	VOO	Difference
Sharpe ratio: Return per unit of total volatility	1.29	1.91	-0.63
Sortino ratio: Return per unit of downside risk	2.03	2.60	-0.57
Omega ratio: Gain probability vs. loss probability	1.25	1.35	-0.10
Calmar ratio: Return relative to maximum drawdown	1.74	2.67	-0.94
Martin ratio: Return relative to average drawdown	3.44	11.96	-8.52

LUV vs. VOO - Sharpe Ratio Comparison

The current LUV Sharpe Ratio is 1.29, which is lower than the VOO Sharpe Ratio of 1.91. The chart below compares the historical Sharpe Ratios of LUV and VOO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

LUV vs. VOO - Drawdown Comparison

The maximum LUV drawdown since its inception was -78.25%, which is greater than VOO's maximum drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for LUV and VOO.

Drawdown Indicators

	LUV	VOO	Difference
Max Drawdown Largest peak-to-trough decline	-78.25%	-33.99%	-44.26%
Max Drawdown (1Y) Largest decline over 1 year	-33.49%	-8.90%	-24.59%
Max Drawdown (3Y) Largest decline over 3 years	-42.93%	-18.69%	-24.24%
Max Drawdown (5Y) Largest decline over 5 years	-58.75%	-24.52%	-34.23%
Max Drawdown (10Y) Largest decline over 10 years	-64.76%	-33.99%	-30.77%
Current Drawdown Current decline from peak	-16.88%	-3.14%	-13.74%
Average Drawdown Average peak-to-trough decline	-29.13%	-3.68%	-25.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	16.88%	1.99%	+14.89%

Volatility

LUV vs. VOO - Volatility Comparison

Southwest Airlines Co. (LUV) has a higher volatility of 12.52% compared to Vanguard S&P 500 ETF (VOO) at 4.83%. This indicates that LUV's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LUV	VOO	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.52%	4.83%	+7.69%
Volatility (6M) Calculated over the trailing 6-month period	35.29%	9.82%	+25.47%
Volatility (1Y) Calculated over the trailing 1-year period	45.25%	12.46%	+32.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	38.52%	16.91%	+21.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	37.73%	18.02%	+19.71%

Dividends

LUV vs. VOO - Dividend Comparison

LUV's dividend yield for the trailing twelve months is around 1.46%, more than VOO's 1.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LUV Southwest Airlines Co.	1.46%	1.74%	2.14%	3.12%	0.00%	0.00%	0.39%	1.30%	1.30%	0.73%	0.75%	0.66%
VOO Vanguard S&P 500 ETF	1.05%	1.13%	1.24%	1.46%	1.69%	1.25%	1.54%	1.88%	2.06%	1.78%	2.02%	2.10%

Frequently Asked Questions

Can I hold both LUV and VOO in my portfolio?

LUV and VOO have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LUV or VOO?

LUV has higher volatility (12.52%) compared to VOO (4.83%). In terms of maximum drawdown, LUV dropped -78.25% vs VOO's -33.99%.

Which has better risk-adjusted returns?

VOO currently has the higher Sharpe Ratio (1.91 vs 1.29), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.